• AUD/USD loses ground near 0.6810 in Monday's early Asian session. 
• The expectation of further Fed rate cuts this year might weigh on the USD in the near term.
• The RBA is expected to keep the OCR unchanged at its September meeting on Tuesday. 

The AUD/USD pair trades with a mild negative bias around 0.6805 during the early Asian session on Monday. The softer Australian Dollar (AUD) creates a headwind for the pair. Investors will keep an eye on the flash reading of the US Purchasing Managers Index (PMI) on Monday for fresh impetus. 

The US Federal Reserve (Fed) cut interest rates by a larger-than-usual half-percentage point to a range of 4.75 to 5.00% last week. Policymakers also predicted an additional 75 basis points (bps) of rate cuts by the end of the year, which could continue to undermine the US Dollar (USD) against the AUD. Fed Chair Jerome Powell noted that the move was meant to show policymakers' commitment to keeping unemployment low as inflation eases. 

Fed Philadelphia President Patrick Harker said on Friday that the US central bank has effectively navigated a challenging economy over the last few years. He added that "hard" and "soft" data are both important in decision-making.

On the Aussie front, data released by Judo Bank and S&P Global on Monday showed that the preliminary reading of Australia's Judo Bank Manufacturing Purchasing Managers Index (PMI) dropped to 46.7 in September from 48.5 in August. Meanwhile, the Services PMI eased to 50.6 in September versus 52.5 prior, and the Composite PMI fell to 49.8 in September from 51.7 in the previous reading. The AUD trades with mild losses in an immediate reaction to the decline in Australian PMI readings. 

The Reserve Bank of Australia (RBA) will announce its interest rate decision on Tuesday, which is anticipated to keep the Official Cash Rate (OCR) at 4.35%. RBA governor Michele Bullock said that policymakers do not expect an interest rate cut in the “near term” and the RBA wouldn't be swayed by other nations cutting rates.